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Minutes of the Grand Forks City Council/Finance-Development
Standby Committee Wednesday, April 7, 2010 - 4:00 p.m.

The Finance/Development Standby Committee met on Wednesday, April 7, 2010 at 4:00 p.m. in Room A-101 in City Hall with Chairman Christensen presiding. Present at roll call: Christensen, Glassheim, Gershman. Also present were Saroj Jerath, Candi Stjern, Todd Feland, Greg Hoover.

1. Refinancing of 2000-E Sanitation Reserve Revenue Bonds.
Saroj Jerath, director of finance/administrative services, reported they are refinancing the 2000-E Sanitation Reserve Revenue Bonds, that each year they see if there are any outstanding bonds that could be refinanced if the market is good, they did the feasibility study and this bond issue met the 3 tests. One of the tests is the estimated net present value, saving should be more than 3% and this one is 11.5%, previous bonds are 5.4% and refinancing interest rate is 2.91% - this refinancing will be able to save about $400,000+, with annual savings of about $23,800. She recommended refinancing of the bond issue. Motion by Glassheim and Christensen to approve the refinancing of the bond issue. Motion carried.

Ms. Jerath noted that since they did the feasibility study and recommendation they got from Springsted, interest rate has increased little and savings maybe little lower than what is shown in the staff report but is still meeting all the criteria for refinancing.

2. JR Simplot wastewater improvements and expansion project update.
Todd Feland, director of public works, presented information relative to the sale of City property in Auditor's Subdiv. No. 28, Lot 6, 43.21 acres to JR Simplot for expansion of their treatment system, appraisal $5800/acre; this matter will be presented to the city council for transfer of said Lot 6 to the Jobs Development Authority (JDA). He met with engineering, etc. and there are two clay stockpiles and Simplot willing to move those from current location and place them on Lot 2, that there is a crushed concrete pile (part of flood protection project) and willing to salvage that - about $35,000 and include as part of the sale of this property. Lot 2 is the BMX track and they are trying to find alternative site and working with Pete Haga (this is not good location for kids because in industrial area). Lot 1 is UND maize project with 2 years left on the lease and in talking with engineering might want to keep for future use. Engineering has stated to keep Lot 5 for drainage for the flood protection project and some property on the other side of this off of Columbia Road that we should maintain for now and maybe beneficial in the future. Simplot involved for a roadway and utility easement and they need to run water and wastewater along Lots 1 and 2 and will also provide a roadway access. Committee suggested platting road in there - public road.

Feland reported the City purchased this property in 1998 for borrow site and used CDBG funds, that City has ability to sell at market value but funds would have to be returned to CDBG Program Funds and reallocated through their program. He stated that reps. from Simplot will be here on Monday to go over their plan for this project - that this is their largest environmental project investment in their food division .

Motion by Christensen that we accept their plan with road platted between Lots 1 and 2; seconded by Glassheim. Motion carried.

The meeting adjourned at 4:20 p.m.
Alice Fontaine, City Clerk